More than 70 per cent of Indians believe retiring financially secure is “unachievable”, said a private survey on Thursday, marking weak preparedness in a country where formal pension coverage remains limited.
The survey by Goalteller, a financial planning platform, highlights a widening gap between long-term financial security and short-term lifestyle priorities. It found two structural issues:
Lack of long-term financial discipline
Inadequate understanding of compounding and inflation-adjusted needs
Many households are either under-investing or delaying retirement planning, sharply increasing the savings burden they will need later.
Lifestyle goals take priority
Even as retirement remains underfunded, the survey found that vacations are the most popular short- to medium-term financial goal.
People are more willing to save for “tangible, near-term experiences” than for distant, abstract goals like retirement.
Such behaviour has implications for financial product design. Goal-based savings instruments linked to lifestyle aspirations, such as travel funds or automated saving tools, may see higher adoption than traditional retirement-focussed products.
Generational divide shapes financial choices
The survey highlights sharp differences across age cohorts:
Gen Z (below 28 years)
Only about 7.6 per cent believe retirement is achievable
Strong preference for short-term and aspirational goals
Rising interest in luxury purchases such as cars
High-risk appetite: nearly 75 per cent of equity investments are in direct stocks
This suggests early financial engagement, but with a bias towards active trading rather than structured planning.
Millennials
Around one in four see retirement as achievable — the highest among all groups
Show relatively better balance between present consumption and future planning
Lead in allocating resources towards entrepreneurship
This cohort appears to be the most financially aware, combining goal-setting with action.
Gen X
Maintain a middle path between long-term security and lifestyle needs
Display consistent participation in equity markets
They are in peak earning years, which enables both consumption and investment.
Boomers
Continue to prioritise retirement, but also focus heavily on family responsibilities such as children’s weddings
Notably high exposure to equities, challenging the assumption that older investors avoid market-linked instruments
This indicates growing financial sophistication even among older investors.
Entrepreneurship emerges as a key aspiration
Across age groups, interest in entrepreneurship is strong, though it manifests differently:
Millennials are investing the most tangible resources into business ventures
Gen Z shows the highest aspiration to start businesses
This signals a shift away from purely salaried income models and increased demand for financial products that support business creation — such as startup loans, micro-investing tools and incubation-linked financing.
What this means for financial planning
The survey underscores a broader transformation in India’s financial mindset. Key patterns include:
Short-termism is rising: Immediate gratification often outweighs long-term security
Equity participation is deepening: Even traditionally conservative groups are engaging with markets
Goals are becoming more personalised: From travel to entrepreneurship to luxury purchases
For financial institutions, this creates both risk and opportunity.
Strategic implications
Retirement solutions need redesign
Bite-sized, flexible plans may work better for younger investors, while advanced planning tools could serve older cohorts.
Align products with behaviour
Savings products linked to real-life goals —travel, vehicles, or events — can act as entry points to disciplined investing.
Support entrepreneurial ambitions
There is clear demand for financing solutions tailored to first-time founders and small business creators.
With high participation in direct stocks, especially among younger investors, there is scope for low-cost platforms combined with investor education.
Products around weddings, family goals, and legacy planning remain relevant, particularly for older demographics.
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